Robert needs to decide between buying a new home gym for $1800 or being able to go on a Canadian vacation for $1,000 and still having enough left over to buy a new set of free weights for $800. Robert opts for the new set of free weights and the Canadian vacation. Robert has used money in what ways in making his decision?

Question

Business

Madeleine Fisher

7 January, 05:42

Robert needs to decide between buying a new home gym for $1800 or being able to go on a Canadian vacation for $1,000 and still having enough left over to buy a new set of free weights for $800. Robert opts for the new set of free weights and the Canadian vacation. Robert has used money in what ways in making his decision?

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Answers (2)

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Kamden Dawson · Answer 1

The unit of account and medium of exchange functions of money are being used by Robert in making his decision.

Explanation:

Money serves a number of function, chief among them is medium of exchange, store of value, and unit of account. Here, Robert is using money to pay for a set of weights and a vacation. He is using money as a medium of exchange for these goods and services. So, money is serving as a medium of exchange.

Robert is also making a comparison between a new home gym and a set of weights and a vacation. Here, he is using the money to express the value of these goods and services. So, money here is serving as a unit of account.

Erick Francis · Answer 2

Medium of Exchange and Standard unit of Account

Explanation:

When money is used to acquire some goods in exchange of money it is called that money is medium of exchange.

Standard unit of Account refers to the standard defined for such good/product or service.

Here, in the given case, with the medium of exchange being money Robert buys free weights and Canadian vacation.

Unit of account is $800 and $1,000 which is standard for these products and service.

Thus, final answer

Medium of Exchange and Standard unit of Account